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Muhammad Asali
''Military service and future earnings: Evidence from an Informed Difference-in-Differences (IDID) approach''
( 2018, Vol. 38 No.3 )
Introducing a new informed difference-in-differences (IDID) approach, and utilizing particularities in the Israeli laws and regulations that exempt married women from military service, we provide evidence about the effects of compulsory military service on future earnings of veterans. The IDID estimates suggest that women experience a highly statistically and economically significant 9.9 percent increase in their wages due to their military service. These effects are smaller than those experienced by minority groups, in common with the evidence from this literature. Finally, the discrepancies we found between the naïve and the consistent estimates suggest that people who voluntarily avoid military service are those who face the highest opportunity costs of service.
Keywords: Informed Difference-in-Differences (IDID), military service, future earnings, quasi experiment
JEL: C3 - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
J3 - Wages, Compensation, and Labor Costs: General
Manuscript Received : Apr 04 2018 Manuscript Accepted : Sep 07 2018

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